Question

1. The master budget

• A. Shows forecasted and actual results

• B. Reflects controllable costs only

• C. Can be used to determine manufacturing cost variances

• D. Contains the operating budget

2. The master (comprehensive) budget

• A. Shows the forecasted and actual results

• B. Reflects controllable costs only

• C. Can be used to determine manufacturing cost variances

• D. Contains both financial and operating budgets

3. Zero-base budgeting has which of the following as its objective?

• A. To base the current year's budget on the expenditures of the previous year

• B. To justify the current year’s budget request in detail beginning with the zero balanc

• C. To give every activity equal funding, with zero differential between allocations

• D. To determine the absolute maximum level of service that can be provided for each activity

4.The major feature of zero-based budgeting (ZBB) is that it

• A. Takes the previous year's budgets and adjusts them for inflation

• B. Questions each activity and determines whether it should be maintained as it is, reduced, or eliminated

• C. Assumes all activities are legitimate and worthy of receiving budget increases to cover any increased costs

• D. Focuses on planned capital outlays for property, plant, and equipment

5.Zero-base budgeting (ZBB) system:

• A. Examines cost/benefit for new activities

• B. Starts with base zero

• C. Starts with dollars

• D. Results in a non alternative budget

6.Emerald Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows:

Direct materials: 3 pounds per unit; $4 per pound
Direct labor: 4 hours per unit; $15 per hour

During the first quarter, Emerald produced 5,000 units of this product. Actual direct materials and direct labor costs were $65,000 and $325,000, respectively.

For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5,000 units.

• A. $60,000

• B. $65,000

• C. $15,000

• D. $30,000

7.

Atlace Manufacturers uses a standard costing system. Standards for direct materials are as follows:

Raw material (pounds per unit of output)	2
Cost (per pound of raw material)	$5

Actual purchases of materials for the current month are 10,000 pounds for $48,000. Planned and actual production for the month is 3,000 units. Atlace has issued 10,000 pounds of raw materials to production. The journal entry to record this transaction would be ________.

• A. a debit to Work-in-Process Inventory for $28,800, a credit to Raw Materials Inventory for $30,000, and a debit to Direct Materials Efficiency Variance for $1,200

• B. a debit to Work-in-Process Inventory for $28,800, a credit to Raw Materials Inventory for $50,000, and a debit to Direct Materials Efficiency Variance for $28,750

• C. a debit to Work-in-Process Inventory for $30,000, a credit to Raw Materials Inventory for $50,000, and a debit to Direct Materials Efficiency Variance for $20,000

• D. a debit to Work-in-Process Inventory for $50,000, a credit to Raw Materials Inventory for $48,000, and a credit to Direct Materials Efficiency Variance for $50,000

Answer 1

Solution :-

(1) The Correct answer is (D) that it  Contains the operating budget

(2) The Correct answer is (D) that Contains both financial and operating budgets

(3) The Correct answer is (B) that is To justify the current year’s budget request in detail beginning with the zero balanc

(4) The Correct answer is (B) that is Questions each activity and determines whether it should be maintained as it is, reduced, or eliminated

(5) The Correct answer is (B) that is Starts with base zero

As per HomeworkLib policy we need to answer only one question even i answer 5 so please ask other questions as seperate one